Yesterday's offensive of president Karol Nawrocki, with the participation of President of the NBP Adam Glapiński, will origin a real panic, and, to tell you the truth, a stronger word relating to uncontrolled physiological activity should be used. A credit denominated in euro, which has been propagandaly called “security”, has been spoken in Poland for many weeks and until yesterday there were various arguments intertwined with absurdities. After the message of the president and the head of the NBP, we entered a fresh era of "economic thought", and this is where the real fun begins, but to have a good time first you gotta present the basic facts.
SAFE proposed by the EU is simply a long-term debt of 3% per year, which Poland will pay for 45 years. The assumptions of this debt are identical to those of alleged franc loans, now widely regarded as invalid by the courts, as the banks in the contracts contained alleged abusive clauses. In translating this language understood by all, banks utilizing their own cognition and consumer ignorance included unlawful provisions in the contracts, in addition to the main allegation concerning exchange rate risks, which the borrower could neither foresee nor prevent. Meanwhile, customers were repeatedly assured by banks that the hazard is minimal due to the fact that the Swiss franc is the most unchangeable currency in the world.
In this respect, the SAFE structure and all “bank guarantees” from not only the borrower, the EU, but besides the Polish government, look identical. The difference is that the EU further depends on whether Poland will follow closely the recommendations for purchases and deadlines themselves, and Poles must choose the right politicians for government positions, what is called "the regulation of law". For these many another reasons, president Karol Nawrocki proposes another solution and is simply a 0% gold loan. This may rise suspicion at the start, due to the fact that all client who erstwhile bought something in installments shortly found out how specified loans actually work. In this case, however, we are dealing with guarantees rather different from those of commercial banks, which are common guarantees.
Firstly, the constitution prohibits the NBP from transferring reserves, otherwise the funds collected, to the state budget, and secondly, the NBP has to transfer profits to the budget. Although president Adam Glapiński simply outlined the principles on which NBP can support the modernization of the Polish army, the financing model is obvious. The NBP generates profit from the accumulated reserves and gives it to the government for purchases for the military. There is besides no interest here, due to the fact that specified NBP cannot collect from the government, naturally it requires a depletion of reserves, but these are counted as a trillion zlotys, not for 185 billion needed for the military.
Of these 2 proposals even the layman, if he is not politically polluted, with his eyes closed, will indicate better financing conditions. However, the politically polluted ones are not missing, and that is why 2 fresh "economic doctrines" were born in the dense fumes of the smoke, and in fact the accounting absurdities of on-call experts:
1. Euro credit at 3% is safer than gold credit at 0%.
2. Always borrow from Fat Olo out of town, never from Grandma.
I mean, seriously, that's the answer to the proposal. President Karol Nawrocki is nothing but a white flag from political opponents alternatively than economists. The proclaimers of these heresies may not be prominent intellectuals, although they think they are, but they surely can separate 3 from 0 and Grandma from Fat Olo. Military safety should and must be built on financial safety and these 2 basic requirements meet Poland's proposal.
We don't believe in anyone, we don't believe in anything! We look at facts and draw conclusions!
